Zambia is seeking an additional $145 million from the International Monetary Fund (IMF) by extending its current loan programme by 12 months.
Finance Minister Situmbeko Musokotwane stated that the extra funding would support the country’s efforts to stabilize its public finances after accumulating a significant debt pile.
The IMF programme, which has already disbursed $1.55 billion out of a $1.7 billion Extended Credit Facility, provides assurance that Zambia is managing its finances prudently.
The minister emphasized that ending the IMF programme in October would result in losing donor support contingent on the IMF’s involvement.
Zambia’s dollar bonds showed a slight increase, with the 2053 maturity rising 0.5 cents to 73.25 on the dollar.
The country’s debt restructuring efforts and commitment to fiscal reforms have gradually improved investor confidence.
